By Bloomberg News - Sep 14, 2011 12:43 PM GMT+0800
Chinese Premier Wen Jiabao, facing calls to widen support for indebted European countries, signaled that developed nations should cut deficits and create jobs rather than relying on China to bail out the world economy.
“Countries must first put their own houses in order,” Wen said today at the World Economic Forum in the Chinese city of Dalian. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.”
Stocks dropped in Asia morning as Wen's comments damped optimism that China can help stabilize the euro-region, after Italy this month followed Spain, Portugal and Greece in seeking Chinese investment. Wen said that the sovereign debt crisis in Europe is spreading, and a former adviser to China's central bank said the nation should avoid buying bonds from European countries where leaders and central bankers are in disarray.
Bill E's take - seems to concur with my comments yesterday on fallacy of financial times report speculating that china will buy italian bonds which triggered the previous nite's dow last hour rally - see http://sgxswinger.blogspot.com/2011/09/reuters-update-italy-asks-china-to-buy.html